financial regulatory reform

Using the Courts to Derail Reform

Powerful financial entities are turning to conservative judges to undermine the Dodd-Frank financial reform law.
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Regulation and the 2010 Elections

The Washington Post is reporting that Wall Street contributions to Democratic campaign committees are markedly lower than this time in 2006 or 2008.

The drop in support comes from many of the same bankers, hedge fund executives and financial services chief executives who are most upset about the financial regulatory reform bill that House Democrats passed last week with almost no Republican support. ... This fundraising free fall from the New York area has left Democrats with diminished resources to defend their House and Senate majorities in November's midterm elections.

With Democrats seeking to impose reasonable regulations designed to protect the American people, this is no surprise.

The Republican Congress was a dream come true for the rapacious financiers who dragged our economy over a cliff, just as it was for all manners of giant corporations. We're seeing the results of the Republican ideology of allowing the most powerful industries to write their own laws and draft their own regulations. Not even the Supreme Court is immune, as a recent report from our affiliate People For the American Way Foundation demonstrates.

Deregulation has made the most powerful even more powerful, while the rest of us find ourselves more and more helpless against corporate behemoths.

Anyone who's spent an hour on hold waiting to get through to a large corporation knows who holds the power in our society, and it isn't us. These companies have been allowed to become so large that they can afford to mistreat their consumers in ways that no business would have gotten away with a generation ago.

Are you happy with the level of corporate influence on our politicians and on our lives? Do you wish you could make Big Business even stronger?

Or do you think it's time for Americans to retake control of our lives? If so, then it's time to act. Because the corporations aren't sitting this election out.

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Legislative Achievements Will Live or Die in the Courts

President Obama was elected on a promise of change, but in order for any of his legislative accomplishments to remain in place, they will need to survive court challenges.

Health care reform has passed. Major financial regulatory reform could be on the horizon. But these reforms will live or die in the federal courts. We immediately saw litigation from right-wing state attorneys general challenging the constitutionality of the health care bill. Will the fate of that bill and others be decided by George W. Bush-appointed judges? That looks increasingly likely if many of the lower federal court vacancies are not filled in a timely manner. Republican obstruction and threats of filibuster cannot be allowed to deter or delay the confirmation of much-needed judicial nominees.

Barry Friedman has an op-ed in today’s Politico that hammers home this point while providing some relevant examples:

Administrations frequently find their regulatory plans in judicial trouble. The Supreme Court gutted the Carter administration's plans to regulate toxic benzene in the workplace. When the Bush administration's Environmental Protection Agency refused to regulate greenhouse gases, claiming a lack of statutory authority, the justices disagreed. The Reagan administration suffered defeat on air bags, the Clinton administration on tobacco regulation.

Just last week, the D.C. Circuit Court ruled the Federal Communications Commission does not have the authority to require broadband providers to treat all customers equally regardless of the type of lawful content they're sending and receiving -- called "net neutrality."

Read Friedman's full piece here:
http://dyn.politico.com/printstory.cfm?uuid=F8683704-18FE-70B2-A857018EEDBEBF04
 

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Hints for the Obama Agenda in the Coming Supreme Court Term

As discussed in a number of previous posts, the Roberts Court has demonstrated its conservative ideological bent, striking down laws passed by Congress and demonstrating a willingness to ignore long-standing precedent. It reached out last term in the Gross age discrimination case to decide an issue that hadn't been briefed and changed the law in a way that will make it much harder for older workers to prove that they were discriminated against in the workplace. In the Ricci fire fighters case, the Court reached out to decide the case on the merits - even though no employee had actually been injured -- so that it could reach the merits and change the law with respect to proving discrimination in so-called disparate impact cases. And, in the recently argued Citizens United case, the Court re-opened the briefing in the case to re-visit what had been a settled question about whether regulating corporate expenditures in candidate elections is constitutional.

Will this trend continue? And what does this mean for President Obama's initiatives on health insurance reform? Climate change? Financial regulatory reform? Asnoted in Adam Liptak's article in yesterday's New York Times, the Court's docket this term includes a number of cases likely to signal its future willingness to support government intervention to address structural problems in our economy. In Free Enterprise Fund v. Public Company Accounting Oversight Board, a case growing out of the Enron debacle, the Court will consider the scope of Congress' power to delegate regulatory responsibility to independent regulatory boards. The issue in Jones v. Harris Associates, concerns the role of courts in regulating executive compensation for mutual fund investment advisers. And in Milavetz, Gallop & Milavetz v. United States, the issue concerns the scope of a federal law concerning lawyers' advice to clients considering bankruptcy. Dry? Perhaps. But what we learn in these cases, may well signal how far the Court is willing to go in supporting or, perhaps more likely, frustrating, efforts by the Administration and Congress to address serious structural problems in our economy.

You think Justices' legal ideology matters? Stay tuned.

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